Feeling the pressure, Terran Fielder, 23, often buys a nice lunch or a small item to "make the workday easier." The communications professional estimates she spends 200-250 USD monthly on this habit. For Fielder, these are not just gifts, but investments in her health and well-being.

Fielder is not alone. The 'little treat' culture is flourishing among young people, who spend money on small items like snacks, bubble tea, or cosmetics to alleviate daily stress without needing a special reason.

A Bank of America report, published in late July, reveals many Gen Z spend hundreds of US dollars monthly on this habit. Nearly 60% admit this self-indulgence leads to overspending. Notably, 57% of young people buy themselves treats at least once a week, even with modest incomes.

Illustration: Fortune

Daniel Levine, Director of consumer consulting firm Avant Guide Institute, notes: "Gen Z is not the first generation to know how to reward themselves, but they are elevating this habit to a new level."

While Baby Boomers often spent on new cars or holidays after major milestones, and Gen X bought late-night food for stress relief, Gen Z has transformed self-reward into a daily activity. The surge in online shopping and food delivery apps fuels this trend. A survey last year found Gen Z uses subscription services 133% more than Gen X.

Psychologically, self-reward releases dopamine, creating an immediate sense of comfort. Generation Z grew up amidst economic instability, pandemics, and environmental concerns, finding that small joys help them regain control and mental balance. Research by Intuit Credit Karma indicates that over 50% of Gen Z prioritize spending on personal hobbies over other financial goals.

However, experts warn this trend is a "slippery slope." Shreya Kaul, a psychological consultant in India, suggests that relying solely on material rewards to cope with stress can lead young people to avoid real emotions and become increasingly dependent on consumption.

"This habit provides temporary relief, but in the long run, it can cause a psychological burden when finances are in deficit," Kaul said.

Holly O'Neill, Head of Retail at Bank of America, reassures that a 7 USD matcha latte will not destroy one's financial future, but impulsive, unplanned spending is the real issue. These small amounts can accumulate to thousands of US dollars annually, hindering major financial goals.

O'Neill advises young people to apply the 50/30/20 budget rule: 50% for necessities, 30% for wants, and 20% for savings. "Prioritize an emergency fund first and choose sustainable, free ways to reward yourself instead of always having to open your wallet," she said.

Ngoc Ngan (According to Fortune)